Business records for foster carers

Using the simplified arrangements, foster carers will need to keep a weekly record of:

• Availability to provide care
• Number of children fostered in each week and the age of each
• For claims for additional deductions for special needs – details of amounts spent, the purpose of the expenditure and any grant  received towards the costs
• Details of total foster care income received (the local authority will usually issue a summary at the end of the year – you need to include all amounts received)

If you don’t use the simplified arrangements, you will need to keep the same range of  business records needed for any sole trader of partnership business. These would include bank statements, cash book, invoices for expenses and receipts for income (see http://www.hmrc.gov.uk/factsheet/record-keeping.pdf). Records should be kept for 6 years.